Rent to Own is a global enterprise. There are
RTO companies serving every continent. To celebrate our 100th
consecutive weekly issue of RTO Magazine, come with us to
Australia, and experience RTO Down Under. Thanks to all of you
for making RTO Online the most read RTO publication in the
world.

Rent-to-Own is about as common in Australia as
wombats are in New York. Jason Wyllie, General Manager of
Pabs is hard at work introducing
Rent-to-Own in 'Oz'.

Jason told RTO Online, "Pabs was the first furniture rental
company in Australia and one of the first furniture rental
companies in the world. The first Pabs began renting 'beds and
fridges' in Melbourne in 1962. In 1972 we opened our second
showroom in Sydney followed by Adelaide, Brisbane and the Gold
Coast".

Pabs is the largest furniture rental company on the
continent. The company offers short and long term rentals on
quality residential and office furniture. Pabs recently launched a Rent-to-Own program
at it's 5 East coast locations.

Pabs Sydney Showroom

"Currently, 80% of rental outlets in Australia are
rent-to-rent", said Jason. "This is a new market for Pabs as it’s the
homeowners we're targeting and not the moving population or the
short-term renter". He added, "All rent-to-rent companies offer
a purchase option available throughout the rental period but
only Pabs offers a Rent-to-Own option available over a 3, 6 & 12
month term".

According to Jason, the 12 month term is most popular with
consumers due to the lower monthly rental payment. The average
US agreement is 18 months.

Based on a 12 month agreement...

120cm (47") TV :$72.00 ($47.85 US) per week

Lounge suite package: $28.80 ($19.18 US) per week (That
would be 'Living Room' for you yanks)

Early purchase option is available and is calculated as
'Cash Price minus 30% of rent paid

Observation...
Pabs history and business model are strikingly similar to
Aaron Rents; Large footprint, shorter term, monthly pay,
with a focus on "Own" rather than "Rent"

It's a little early in the companies RTO program to calculate
accurate keep rates, but Jason said early indicators are 80%.
This is 3 - 4 times the US rate. Short rental terms (12 month),
and a focus on ownership rather than 'return it anytime' likely
contribute to this high number. The company has no plans to move
to 18 or 24 month RTO agreements. "When the rental term goes
beyond 12 months we feel that the keep rates will reduce", said
Jason.

According to the 2001
census, the median weekly individual income for people aged
15 years and over was $399 ($264.85 US)

This period in Australian RTO evolution is similar to the
80's in the US. At that time, electronics and appliances were
the main focus. Furniture was a sideline. Today, furniture
accounts for over 30% of all US rental agreements. There are
several appliance and electronics rent to own companies
operating in Australia, but Jason estimates there are fewer than 30
Rent-to-Own locations in the entire country offering furniture.
With a population of 20 million, the potential for growth is
enormous. The average Pabs location is 25,000 square feet,
5 times larger than their American cousins and, more
importantly, 5 times larger than the local competition, allowing
a much broader display of merchandise.

Australian rental companies are ahead of their US
counterparts in embracing the internet as a revenue generator.
Jason told RTO Online, "We have incorporated a full service
centre online that allows our customers to place orders, pay
bills, and request pickups all in a secure environment". He
added, "Pabs was the First Furniture Rental company in
Australia, and possibly the world, to offer this level of online
service". The proof is in the pudding. According to Jason,
www.pabs.com.au generates
a whopping 10% of the companies total revenue.

While Rent-to-Own is in its infancy,
rent-to-rent is booming Down Under. "Out of the total businesses
located in Australia", said Jason, "there are 10 major players
including Pabs Furniture Rentals. We provide the largest range
of quality furniture and appliances for short or long term
rental in Australia".

According to the
Australian Bureau of Statistics, the Australian
personal and household goods rental industry has approximately
409 businesses operating from 2124 outlets. 72% are located in
capital cities with the remainder in rural areas. The industry
employs 3,500 people with annual revenues of $233 million.

Like here at home, Australians insist on great service.
"Competition is fierce in Australia and you really need to be on
the ball if you want to succeed in [the rental] business", said
Jason.
He adds, "Consumers expect superior service and competitive
pricing and Pabs provides this to our clients at all times".

Pabs has been supplying furniture and appliance rental to
corporate and residential clients since 1962. "In this time we
have provided our services to the world’s largest corporations
where excellence in service is expected at all times", said
Jason.

The majority of Pabs rent-to-rent customers are professionals
who have a need for furniture rental on a 6-12 month basis.
"This type of consumer expects to have the latest in Furniture
styles and brand name Appliances and will generally pay
approximately $60.00 ($39.90 US) per month for a 68cm (27") TV
based on a 6 month rental term", said Jason. There is also a
high demand for short term furniture rental and consumers are
charged a higher rate for short term agreements.

Pabs is a member of the
Hire
and Rental Industry Association (HRIA), Australia's largest
trade group, serving all rent-to-rent and Rent-to-Own companies.
Pabs is also a government-endorsed supplier.

Pabs uses a barcode system to manage and control inventory
efficiently and precisely. Says Jason, "We take furniture
rental seriously and rely on technology to streamline business
practices".

While there are differences in methods, the similarities
between US and Australian Rent-to-Own are evident. The demand
for quality merchandise, delivered today, with world class
service to follow, unites us all.

RTO Online is the official channel for Rent-to-Own Industry News and the
only independent source of news for the rent-to-own, rental-purchase,
lease-purchase trade. RTO Online (Rent to Own Online) represents the choice
of the entire RTO Industry for trusted information, as it happens.